As much as male drivers hate to admit it, the fact is that women are considered to be lower risk drivers. It is so significant in South Africa that there are even car insurance companies that are prepared to charge women lower premiums for car insurance. While the amusing TV ads selling car insurance for women only has caught the attention of South Africans, are women really cashing in on this opportunity? The fact is that some female car owners are a bit cautious about car insurance for women only. Is it lesser cover? What is the catch?

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The reality is that there is no catch. Car insurance for women only offers the same level of cover as any standard policy. In fact. every car insurance company in South Africa technically offers cheaper premiums for females but may not market it as aggressively as some providers such as First for Women. Yes, cheaper car insurance for women only is not new. It was always in the market and gender was built into the policy premiums at the outset.

Risk Profile For Car Insurance

Before men start protesting that cheaper car insurance for women is discriminatory, remember that many financial products are costed according to individual and group risk profile. It is not only about gender. Age, lifestyle and previous history are all taken into account when an insurance company decides on the premium that you will pay for cover. From life insurance to disability cover, insurance companies have to decide how much of a risk you are when they cover you.

Even the make of car affects the insurance quote at the end of the day. Women are considered have a lower risk profile than men and therefore benefit from their gender. The savings are even better if they are over 25 years of age as under 25 car insurance is more expensive. Some may argue that men are higher risk drivers without having any verifiable proof but that fact is that car insurance companies reach these decisions based on their claim statistics and the risk assessment by their actuaries.

Savings for Women

Before you change over to an insurance provider that seems to be the only company offering cheaper car insurance for women. Look at the difference carefully. It is always better to stay with the car insurance provider with whom you have a history. You are undoubtedly already discounted for being a female car owner and then factor in that as a loyal customer you may already be getting the best rate. However, if you do not as yet have car insurance then it is worth looking at providers that specialise on car insurance for women only.

Moving beyond your gender, some car insurance companies now have special discounts for people who drive less. This can add to your savings especially if you are a stay-at-home mom who only goes out for shopping and school runs. These pay as you drive car insurance offerings can lower your premium significantly beyond what the car insurance for women only is offering you. It still translates into savings without capitalising on that fact that women are low risk drivers.

Costs and Benefits

Car insurance for women only does reduce the cost of your premiums. Whether it is significantly cheaper than what your car insurance provider is currently offering is debatable at times. As a female driver you can enjoy anywhere between a 20% to 30% saving over a male driver of the same age and other risk factors that are normally costed into the policy. This means that if a male driver with all the same risk factors is paying R500 per month for car insurance, you can get cover for as cheap as R350 per month. Pricing does vary from one provider to another.

The benefits on a car insurance for women only policy is the same – if you buy comprehensive cover than you get the best protection but if you buy third part cover only then you get just the bare minimum. Look at the car insurance excess structure as well. Before you sign up for cheaper monthly premiums on a car insurance for women only, ensure that the excess you pay at the time of a claim is not exorbitant above and beyond traditional policies. It makes no sense to save now and pay later at the time of a claim.